BUSINESS ACTIVITY & INSTALMENT ACTIVITY STATEMENT TASKS

Transcription

1 C ARRY OUT BUSINESS ACTIVITY & INSTALMENT ACTIVITY STATEMENT TASKS FOURTH EDITION

2 Disclaimer This book and any related publication are sold and distributed on the basis that the authors, consultants and editors: Are not engaged in providing legal, financial, accounting, tax or any professional advice or service whatsoever. Are not liable or responsible in any way for the result of any action or failure to act, which occurs on the basis of the contents of this book or any related publication. This disclaimer expressly includes liability or responsibility for errors or omissions. The authors, consultants and editors urge that professional advice or service should always be sought in legal, financial, accounting, tax or any other related areas. This book and any other related publications are sold for educational and teaching purposes. ISBN: Fourth Edition, January 2013 Published by National Core Accounting Publications PO Box 210 Bondi NSW 2026 Ph (02) This book is copyright and all rights are reserved. No part of this work is to be reproduced other than in accordance with the Copyright Act, or with the written permission of the publishers. The Copyright Act 1968 of Australia allows a maximum of one chapter or 10% of this book, whichever is the greater, to be copied by any educational institution for its educational purposes provided that that educational institution (or the body that administers it) has given a remuneration notice to Copyright Agency Limited (CAL) under the Act. For details of the CAL licence for educational institutions contact: Copyright Agency Limited, telephone: (02) , info@copyright.com.au

3 Carry Out Business Activity & Instalment Activity Statement Tasks Phillip Charles & Sonia Deaner FOURTH EDITION

4 Workbook Available from learnnowbiz.com The Carry Out Business Activity & Instalment Activity Tasks Workbook is designed to be used in conjunction with this book and contains the following: Templates to answer the Self-Testing Exercises contained in this book. MYOB BASlink Worked Example with Reconciliation Checklists and Solutions. MYOB BASlink Assessment Exercise.

5 Foreword This textbook is designed for use by students undertaking a course to meet the educational requirements for BAS Agent registration, or by registered BAS Agents to update their skills. Emphasis is placed on understanding Business Activity & Instalment Activity Statements as well as the underlying taxation theory. Each chapter begins with an overview. The theory behind each procedure is explained and illustrative examples are provided to demonstrate its application. Self-testing exercises, with solutions, allow the student to test that skills are learned before moving on. Graded questions are included at the end of each chapter. We wish to extend our thanks to our colleagues and students who have contributed their ideas and suggestions towards this book. Regards Phillip Charles & Sonia Deaner

6 6 Carry Out Business Activity & Instalment Activity Statement Tasks Contents Chapter 1 The Business Tax System Creating a Business Operating a Business Introduction to Activity Statements Providing BAS Services Income Tax...50 Chapter 2 PAYG and the Instalment Activity Statement What is PAYG? PAYG Withholding System PAYG Tax Withheld and Activity Statements The PAYG Instalment System PAYG Instalments and Activity Statements Completing Instalment Activity Statements Chapter 3 The Goods and Services Tax The Mechanics of GST and the BAS Types of Supply Methods for Calculating GST Liability The GST Calculation Worksheet: GST on Sales The GST Calculation Worksheet: GST on Purchases Chapter 4 Other Reporting Requirements Luxury Car Tax Fuel Tax Credits Wine Equalisation Tax Fringe Benefits Tax

7 Chapter 5 Completing the Business Activity Statement Payment GST Reporting Periods BAS Form Types Completing the BAS Chapter 6 Advanced BAS Topics Cash or Accrual Accounting The Accounts Method Business Interaction with the Australian Taxation Office Lodgement of Activity Statements Payment and Refunds Errors and Adjustments Cash Flow Management for Taxation Liabilities Chapter 7 BAS Preparation in a Computerised Accounting System Tax Codes Processing BAS and GST Transactions in MYOB MYOB BASlink Appendix A 521 Activity Statement Types Weekly Tax Table TFN Application Form Index 541

8 8 Carry Out Business Activity & Instalment Activity Statement Tasks Coverage of BAS Form by Chapter 1 3 2

9 Contents BAS Preparation in a Computerised Accounting System